Schemes in Favor of Agriculture Sector – Striving for Holistic Growth

The Agriculture sector has been one of the most flourishing sectors in the Indian economy. The agricultural industry plays a massive role in the progressive nature of the economy of India. The relevance of the Agriculture sector in the day-to-day lives of Indian people prominent since time immemorial. And even today, its role in humans’ lives and the country’s development remains rising. During Independence, there was extremely low productivity per hectare & per worker in the Agriculture sector. However, the previous trend of stagnant agriculture changed entirely due to the introduction of economic planning introduced since 1950-51, emphasizing developing the technology in Agriculture sector, particularly after 1962. The Agriculture sector is an essential source of livelihood for almost 58 percent of India’s total population.

The Agriculture sector in India aims for tremendous progress, increasing the contribution to food trade every year due to its immense value addition, particularly within the food industry. Indian food & grocery market is the world’s sixth-largest. During the 2019-2020 crop years, food grain production was estimated to record 295.67 million tonnes (MT). In 2020-21, the Government of India is targeting food grain production of around 298 MT.

Production of horticulture crops in India was estimated at a record 320.48 million metric tonnes in FY20 as per second advance estimates. India is supposed to have the largest livestock population of about 535.78 million, which translates to about 31 percent of the world population. Sugar production in India reached 26.46 MT between October 2019 & May 2020, as per the Indian Sugar Mills Association (ISMA).

India is amongst the 15 leading exporters of agricultural related products in the world. Agriculture exports from India reached US$ 38.54 billion in FY19 and US$ 28.93 billion in the FY20 (till January 2020). The organic food sector of the Agriculture sector in India is expected to grow at a CAGR of 10 percent during 2015-25 & is estimated to reach Rs 75,000 crore (US$ 10.73 billion) by 2025 from Rs 2,700 crore (US$ 386.32 million) in 2015.

Importance of Agriculture sector in India

The importance of Agriculture in India cannot be described in two or three pages. The role and significance of this sector date back to Indus valley civilization, highlighting its relevance then and in the coming times. Agriculture is the base of rural India. The rural area and its people live on the single hope and, i.e., the Agriculture sector and its allied sectors for their daily living. Apart from providing means of livelihood, let us throw some light on its plenty of other significances:

Contribution to National Income– Agriculture sector and its related activities have always held a significant share in our national income. In recent years, the percentage of contribution has declined gradually with other industrialized sectors’ growth. But the agriculture share in India remains very high compared to many other developed countries in the world.
Source of Livelihood-Over two-thirds of India’s working population is engaged directly in the Agriculture sector. As per an estimate, about 57 percent of the working population is involved in Agriculture. The rural community is mostly dependant on allied activities and the Agriculture sector for its daily bread earner.
Source of Food Supply– Agriculture sector products are the primary food supply source for our country’s vast population. As per specific estimates, it meets about 60 percent of household consumption.
Role of Agriculture sector for Industrial Development – Several industries such as cotton & jute textiles, sugar manufacturing, edible oils, plantation industries, and cottage industries depend heavily on the Agriculture sector to supply raw materials. The agro-based industries generate about 50 percent of income in the manufacturing industry. Thus, the Agriculture sector contributes to the industrial development of the country.
Commercially Important– Agricultural products constitute a large portion of the country’s total exports. Some of the export list’s main items include tea, coffee, sugar, tobacco, spices, cashew nuts, etc. These contribute to about 50 percent of the total exports from our country. In addition to the agricultural products, products from agro-based industries like jute & cotton textiles also contribute another 20 percent to the total exports. Hence, we can say that the agriculture sector is a vital organ to the country’s international trade & commerce activities.
Source of Revenue– Both the country’s Central & State Governments earn a surplus amount of revenues from the Agriculture sector. The rising land revenue contributes to a substantial portion of income. Like railways and roadways, other sectors also derive a good part of their income from the Agriculture sector’s movement and goods.

Challenges Faced by the Agriculture sector

The Agriculture sector has been confronting innumerable challenges on its way of progress.

Some of the significant obstructions lying on its way are as follows:

Laidback attitude : Slow agricultural growth is a primary concern of the Agriculture sector as most of India’s population is highly dependent on rural employment for a living. The current farming practice is neither economically nor environmentally sustainable, and India’s crop yields for most agricultural commodities are low. Poorly managed irrigation systems and lack of good extension services are among the factors responsible—farmers’ access to markets hampered by poor roads, rudimentary market infrastructure, and excessive regulation.

Inadequacy of infrastructure : The agriculture sector suffers due to inadequate infrastructure and services because of low investment in the technology in Agriculture sector. Farming equipment and infrastructure are scarce. Because many farms are small in size, the farmers cannot afford sound irrigation systems to increase their productivity.

Inadequate size of landholdings : The average size of land holdings is too small in India. The average length of land holdings is less and subject to fragmentation due to land ceiling activities and, in some cases, family disputes. Such smallholdings are overmanned, resulting in disguised unemployment and low productivity of labor.

Dependence of agriculture on weather : The Agriculture sector in India and many other developing countries depend on the monsoon for its productivity. Due to fewer or more rains or untimely rains, agricultural production is ruined. The Agriculture sector depends on temperature too. A high temperature negatively affects the productivity of a crop. India’s present insurance system does not cater much for any loss of yield due to unfavorable and unavoidable climatic situations or pest epidemics.

The use of technology is inadequate : Adopting modern agricultural practices and using technology is insufficient, hampered by ignorance, and high costs. In India, farming practices are non-scientific and need forethought before implementing any new technology.

The umbrella of schemes in favor of the Agriculture sector

The Government of India launched several agriculture sector schemes and projects to assist the Agriculture sector in India. India’s government has attempted to secure the Agriculture sector through its multiple agriculture sector schemes like Coir Udyami Yojana, Pradhan Mantri Gram Sinchai Yojana, Paramparagat Krishi Vikas Yojana, National Animal Disease Control program, Rainfed area development program, etc. These schemes’ sole motive is to aid and assist the Agriculture sector for its better contribution to the economy and improve farmers’ conditions in the current scenario. The reason behind initiating the umbrella schemes in favor of the Agriculture sector is to support the Indian economy, small industries, and the agriculture sector.

Pradhan Mantri Gram Sinchai Yojana : Under this scheme, the government aims to cover and rinse every farmer’s field and improve the water use efficiency to achieve the motto of ‘Per Drop More Crop.’ The scheme ensures improved access to irrigation. Around 285 new irrigation projects were undertaken in 2018 to provide irrigation for 18.8 million land hectares. As per the Union Budget 2019-2020, India’s Government has allocated Rs 3,949.90 crore to promote the Agriculture sector.

Paramparagat Krishi Vikas Yojana : The scheme aims to motivate farmers to take up organic farming activities in the agriculture sector. As per therevised estimate for 2018-2019, the government has allocated Rs 77,752 crore in favor of the scheme.

Rainfed Area Development program : RAD scheme focuses on Integrated Farming System to enhance productivity and minimize the risks related to climatic variability in the Agriculture sector. Under the current system, the cropping system got integrated with horticulture, livestock, fishery, agroforestry, etc. It enables farmers to maximize farm returns and mitigate the impacts of unpredictable situations like drought, flood, or extreme weather conditions with the income opportunity from allied activities during crop damage.

Coir Udyami Yojana

The loan scheme under Coir Udyami Yojana is in the favor agriculture sector. It is one of the turning points in the agriculture sector due to its central significance in the current scenario. The project is headed by the Coir Board and aims to provide financial support to coir units. Banks usually finance projects through composite loans. Financial institutions finance capital expenditure through a term loan to meet the working capital requirements. The coir Yojana is a credit-linked subsidy scheme that helps the entrepreneurs establish the coir manufacturing units for a maximum project price limited to Rs. 10 lakh. The system is a mixture of subsidy and loan, subject to the small upfront contribution through the unit’s owner. The start-up entrepreneurs interested in setting up the coir manufacturing unit could benefit from this scheme. They could apply towards any coir board of the state or otherwise chosen institute through the coir board. The willing ones can also apply online for availing subsidy and a loan under Coir Udyami Yojana by visiting its official website.

Objectives of the scheme Coir Udyami Yojana

The Aim and objective of the Coir Udyami Yojana scheme are as under:

To modernize the Coir Industry by adopting modern technology in producing and processing coir and coir goods.
To upgrade the production and processing technology for enhancing productivity, quality, and product diversification.
To increase the efficiency and productivity for improving the earnings of the workforces engaged in the sector.
To encourage the utilization of coconut husk and growing of the production of coir fiber & coir goods.
It is generating work opportunities in the rural areas of the coconut-producing States/Union Territories.
To deliver work opportunities for women in rural areas for promoting gender empowerment.
To improve the socio-economic conditions of the producers as well as workers engaged in the coir industry.
To contribute to the inclusive development of vulnerable sections of societies, particularly those belonging towards Scheduled Castes, Scheduled Tribes, and North Eastern Region.
To give enough training to the coconut producing States’ rural youth to attract them to the fold of coir segment.
To provide backward/forward linkages to the unitholders to whom help is given under the Coir Udyami Yojana scheme.

Nature of Financial Assistance

The pattern of help and assistance as per the Coir Udyami Yojana scheme is 40% of the total project cost as Government of India subsidy, 55% as of loan from Bank, and 5% as beneficiary contribution.
The Coir Udyami Yojana Scheme lends Marketing Support Assistance towards the beneficiaries.
For furnishing financial help for establishing the Marketing Consortium of CUY beneficiaries.
For repayment of expenses incurred for participation in fairs or exhibitions.
For hiring showroom spaces.
For reimbursement of the salary of staff employed in the Consortium.

Road Ahead

Most Indians are dependent on agriculture. Some are directly attached to farming, and some other people are involved in doing business with this sector. India can produce food grains, which can make a vast difference in the Indian economy. To achieve the government’s targeted mark, it needs to provide support, bank loans, and other machinery to the small farmers and the big farmers. With this, we can expect some improvement in the agricultural sector. India can achieve the ambitious goal of doubling agriculture income by 2022. India’s agriculture sector can generate better momentum in the coming years due to Government schemes and projects with increased agricultural infrastructure investment. India needs to be self-sufficient in the agriculture sector in the coming few years due to its combined efforts and wholeheartedly NGOs like us.

Our NGO, a Hindrise Foundation, a dedicated NGO, improves the farmers’ condition in the current scenario by lending helping hands and availing benefits in all forms. The core area of the Hindrise Social Welfare Foundation in the realm of agriculture is uplifting the farmers’ ability by making them perform better in their area. We are drilling hard by widening their ambit of knowledge concerning all the activities they are supposed to perform in the future. Our experts will serve the farmers with the required experience that farmers must possess to survive in modern times through training programs. We are also conducting training and development programs for the farmers to familiarize them with the latest developed techniques by scientists to utilize them and empower themselves and enhance their farming techniques. We will be proactively working to develop solutions for the challenges that farmers are facing nowadays in India. Our contribution to the Agriculture sector is unparalleled.